IBM: to spin off managed infrastructure services unit
(CercleFinance.com) - IBM plans to spin off its managed infrastructure services unit into a stand-alone public company, increasing its focus on the bigger and more profitable cloud market.
With tighter integration and focus on its cloud and AI businesses, the IT giant will move from a company with more than half of its revenues in services to one with a majority in high-value cloud software and solutions, which represents a 1 trillion dollar market opportunity, it said.
IBM will also have more than 50% of its portfolio in recurring revenues.
The new listed company, which is still to be named, will immediately be the world's leading managed infrastructure services provider, with more than 4,600 clients in 115 countries, the company added.
The separation is expected to be completed by the end of 2021, IBM said.
In connection with the announcement, IBM said it expected to post operating earnings per share of 2.58 dollars for the third quarter, in line with consensus.
The shares were up 13% in pre-market trading after all these announcements.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
With tighter integration and focus on its cloud and AI businesses, the IT giant will move from a company with more than half of its revenues in services to one with a majority in high-value cloud software and solutions, which represents a 1 trillion dollar market opportunity, it said.
IBM will also have more than 50% of its portfolio in recurring revenues.
The new listed company, which is still to be named, will immediately be the world's leading managed infrastructure services provider, with more than 4,600 clients in 115 countries, the company added.
The separation is expected to be completed by the end of 2021, IBM said.
In connection with the announcement, IBM said it expected to post operating earnings per share of 2.58 dollars for the third quarter, in line with consensus.
The shares were up 13% in pre-market trading after all these announcements.
Copyright (c) 2020 CercleFinance.com. All rights reserved.